Provides residential electric customers with an option for greater control of the cost of such service by installing real time smart meters

Title of bill

An act to amend the public service law, in relation to providing real time smart metering technology to residential electricity customers

Purpose

This bill seeks to facilitate the use of "smart metering" of electricity by residential users so that households can reduce the cost of electrical services by utilizing electricity during off-peak times which is Cheaper than using electricity during high peak demand times, and to enable Westchester County to develop and implement a real time pricing smart metering pilot program immediately.

Summary of specific provisions

Section 1: Legislative intent.

Section 2: Adds a new Public Service Law section 39-a, to encourage the use of real time pricing smart metering for residential users. Larger commercial and industrial users of electricity already have access to this new metering technology.

This section provides:

* Definitions for what the new "smart meters" must be able to do so that residential consumers can easily compare on a 1/2 hour basis the amount of electricity the consumer uses and the price of such electricity at the time of use;

* Authorizes the Public Service Commission (PSC) to certify companies that can sell, maintain or repair such smart meters;

* Allows electric utility companies and independent vendors to sell, maintain or repair such smart meters; and

* Enables Westchester County legislature or board of supervisors to immediately develop and implement a real time smart metering pilot program within the county of Westchester.

Justification

Smart metering programs already exist for large commercial and industrial users of electricity, which have proven successful in New York and throughout the United States as a means to control costs, conserve energy, and prevent service disruptions.

Smart metering and demand response programs could provide residential electricity consumers with electricity rate price signals so that such consumers would have accurate knowledge to properly alter their behavior and utilize electricity during cheaper off-peak times of the day.

This would have two benefits. First, the cost of electricity could be reduced for residential customers because it would be utilized when the price of electricity was low. Second, shifting the demand for electricity from peak times to off peak times would reduce the stress that is placed on electrical generating plants, transmission lines, and the national electrical grid to provide more power during peak usage times. This, in turn, would reduce the likelihood of blackouts and other service disruptions that can happen when power plants and transmission lines are forced to produce large amounts of electricity at or above their normal generating capacity. In Westchester County, for example, providing consumers with real time pricing would allow them to choose using electricity at a peak time of day when it could cost 52.16 dollars per kilowatt or during an off-peak time when it costs about 9.8 cents per kilowatt hour.

Prior legislative history

2008 - S.7876 - Referred to the Energy and Telecommunications Committee

Fiscal impact

None Noted.

Effective date

This act would take effect 180 days after it shall have become law.